PART 2 | FINANCIAL ADVISERS AND REPRESENTATIVES |
[1/2009] | Division 1 — Financial Advisers |
[1/2009] | Need for financial adviser’s licence |
6.—(1) A person must not act as a financial adviser in Singapore in respect of any financial advisory service unless the person —| (a) | is authorised to do so in respect of that financial advisory service by a financial adviser’s licence; or | | (b) | is an exempt financial adviser. |
| (2) For the purposes of subsection (1), a person is deemed to be acting as a financial adviser in Singapore if the person engages in any activity or conduct that is intended to or likely to induce the public in Singapore or any section thereof to use any financial advisory service provided by the person, whether or not the activity or conduct is intended to or likely to have that effect outside Singapore. |
| (3) In determining whether a person is engaging in any activity or conduct that is intended to or likely to have the effect mentioned in subsection (2), regard is to be had to such considerations as the Authority may prescribe. |
| (4) Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $75,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $7,500 for every day or part of a day during which the offence continues after conviction. |
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| Application for grant of financial adviser’s licence |
7.—(1) An application for the grant of a financial adviser’s licence must be —| (a) | made to the Authority in such form and manner as may be prescribed; and | | (b) | accompanied by a non-refundable application fee of a prescribed amount, which must be paid in the manner specified by the Authority. [1/2009] |
| (2) The Authority may require an applicant to provide it with such information or documents as it considers necessary in relation to the application. [8 |
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| Grounds for refusal to grant financial adviser’s licence |
8.—(1) The Authority may refuse an application for the grant of a financial adviser’s licence if —| (a) | the applicant is not a corporation; | | (b) | the applicant is unable to meet or continue to meet such minimum financial requirements or such other requirements as the Authority may prescribe, either generally or specifically; | | (c) | the applicant does not have in force a professional indemnity insurance policy, the cover of which is consistent with such limit and deductible requirements as may be prescribed, or any other measure as may be approved by the Authority in lieu of a professional indemnity insurance policy; | | (d) | the applicant has not provided the Authority with such information or documents as may be required under section 7(2), or such other information or documents relating to it or any person employed by or associated with it for the purposes of its business or relating to any circumstance likely to affect its manner of conducting business as may be required by the Authority; | | (e) | any information or document that is provided by the applicant to the Authority is false or misleading; | | (f) | the applicant or any of its substantial shareholders is in the course of being wound up or otherwise dissolved, whether in Singapore or elsewhere; | | (g) | a receiver, receiver and manager, judicial manager or an equivalent person has been appointed, whether in Singapore or elsewhere, in relation to, or in respect of any property of, the applicant or any of its substantial shareholders; | | (h) | the applicant or any of its substantial shareholders has, whether in Singapore or elsewhere, entered into a compromise or scheme of arrangement with its creditors, being a compromise or scheme of arrangement that is still in operation; | | (i) | an enforcement order against the applicant or any of its substantial shareholders in respect of a judgment debt has been returned unsatisfied in whole or in part; [Act 25 of 2021 wef 01/04/2022] | | (j) | the Authority is not satisfied as to the educational qualification or experience of the officers or employees of the applicant who are to perform duties in connection with the holding of the financial adviser’s licence; | | (k) | the Authority has reason to believe that the applicant, or any of its officers or employees, will not perform the functions of a financial adviser efficiently, honestly or fairly; | | (l) | a prohibition order under section 68 has been made by the Authority, and remains in force, against the applicant; | | (m) | the applicant or any of its substantial shareholders or officers —| (i) | has been convicted, whether in Singapore or elsewhere, of an offence involving fraud or dishonesty or the conviction for which involved a finding that the applicant, the substantial shareholder or the officer acted fraudulently or dishonestly; or | | (ii) | has been convicted of an offence under this Act; |
| | (n) | the applicant fails to satisfy the Authority —| (i) | that it is a fit and proper person to be licensed; or | | (ii) | that all of its officers, employees and substantial shareholders are fit and proper persons; |
| | (o) | the Authority has reason to believe that the applicant may not act in the best interests of its clients, having regard to the reputation, character, financial integrity and reliability of the applicant or any of its officers, employees or substantial shareholders; | | (p) | the Authority is not satisfied as to —| (i) | the financial standing of the applicant or any of its substantial shareholders; | | (ii) | the manner in which the applicant’s business is to be conducted; or | | (iii) | the record of past performance or expertise of the applicant, having regard to the nature of the business which the applicant may carry on in connection with the holding of the licence; |
| | (q) | there are other circumstances which are likely —| (i) | to lead to the improper conduct of business by the applicant, or any of its officers, employees or substantial shareholders; or | | (ii) | to reflect discredit on the manner of conduct of the business of the applicant or any of its substantial shareholders; or |
| | (r) | the Authority is of the opinion that it would be contrary to the public interest to grant the licence. [1/2009] |
(2) For the purposes of subsection (1)(c) —| (a) | the Authority may prescribe different amounts of cover under a professional indemnity insurance policy according to the activities undertaken or to be undertaken by any applicant; and | | (b) | “professional indemnity insurance policy” means a contract of insurance with an insurer under which a person is indemnified in respect of the liabilities arising out of or in the course of the person’s business as a financial adviser. |
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| (3) Subject to subsection (4), the Authority must not refuse an application for the grant of a financial adviser’s licence without giving the applicant an opportunity to be heard. [1/2009] |
(4) The Authority may refuse an application for the grant of a financial adviser’s licence on any of the following grounds without giving the applicant an opportunity to be heard:| (a) | the applicant is in the course of being wound up or otherwise dissolved, whether in Singapore or elsewhere; | | (b) | a receiver, a receiver and manager or an equivalent person has been appointed, whether in Singapore or elsewhere, in relation to or in respect of any property of the applicant; | | (c) | a prohibition order under section 68 has been made by the Authority, and remains in force, against the applicant; | | (d) | the applicant has been convicted, whether in Singapore or elsewhere, of an offence involving fraud or dishonesty or the conviction for which involved a finding that it had acted fraudulently or dishonestly. [9 [1/2009] |
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| Failure to maintain minimum financial requirements or professional indemnity insurance policy |
9.—(1) A licensed financial adviser must —| (a) | maintain, at all times during the currency of its licence, such minimum financial requirements or such other requirements as may be prescribed under section 8(1)(b); and | | (b) | have in force, at all times during the currency of its licence, a professional indemnity insurance policy, the cover of which is consistent with such limit and deductible requirements as may be prescribed, or any other measure as may be approved by the Authority in lieu of a professional indemnity insurance policy, under section 8(1)(c). |
(2) Where a licensed financial adviser contravenes subsection (1), the Authority may, without affecting any other remedy available to the Authority under this Act —| (a) | permit the financial adviser to continue to act as such, subject to such conditions as the Authority may impose; or | | (b) | impose such requirements as may be specified in written directions, including requiring the financial adviser —| (i) | to cease to act as a financial adviser other than for the purpose of giving effect to any agreement, transaction or arrangement that is permitted by or by virtue of its licence, and that has been entered into before the time of its failure to comply with the minimum financial requirements or such other requirements as may be prescribed under section 8(1)(b); | | (ii) | to cease to act as a financial adviser other than for the purpose of giving effect to any agreement, transaction or arrangement that is permitted by or by virtue of its licence, and that has been entered into before the time of its failure to have in force a professional indemnity insurance policy, or such other measure as may be approved by the Authority in lieu of a professional indemnity insurance policy, under section 8(1)(c); or | | (iii) | to submit such statements or reports on a weekly basis or at such other intervals as the Authority may require until it meets the minimum financial requirements or such other requirements as may be prescribed under section 8(1)(b). |
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| (3) Any licensed financial adviser which, without reasonable excuse, contravenes subsection (1) or any condition imposed by the Authority under subsection (2)(a) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000. [10 |
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| Grant of financial adviser’s licence |
| 10.—(1) The Authority may grant any financial adviser’s licence, subject to such conditions or restrictions as it thinks fit. [1/2009] | (2) Without limiting subsection (1), the Authority may, in granting any financial adviser’s licence, impose conditions or restrictions with respect to the type of financial advisory service which may or may not be provided by the licensed financial adviser, described in such manner as the Authority may consider appropriate. [1/2009] |
| (3) The Authority may at any time add to, vary or revoke any condition or restriction of a financial adviser’s licence. [1/2009] |
| (4) Any licensed financial adviser who contravenes any condition or restriction imposed by the Authority under this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part of a day during which the offence continues after conviction. [13 |
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| 11.—(1) A licensed financial adviser must, on a yearly basis on such date as the Authority may specify, pay such licence fee as the Authority may prescribe. [1/2009] (2) Any licence fee paid to the Authority under this Act must not be refunded or remitted if —| (a) | during the period to which the licence fee relates, the licence is revoked or suspended or lapses under section 15; | | (b) | during the period to which the licence fee relates, the licensed financial adviser fails or ceases to provide any financial advisory service; or | | (c) | a prohibition order has been made against the licensed financial adviser under section 68. [1/2009] |
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| (3) Subject to subsection (2), the Authority may, where it considers appropriate, refund or remit the whole or part of any licence fee paid or payable to it. |
| (4) Where a licensed financial adviser fails to pay the licence fee by the date on which such fee is due, the Authority may impose a late payment fee of a prescribed amount for every day or part of a day that the payment is late and both fees are recoverable by the Authority as a judgment debt. [14 [1/2009] |
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| Variation of financial adviser’s licence |
12.—(1) A licensed financial adviser may apply to the Authority, in such form and manner as may be prescribed, to vary its licence —| (a) | by adding one or more types of financial advisory service authorised to be provided by its licence; or | | (b) | by adding one or more types of investment product in respect of which it may provide any financial advisory service. [1/2009] |
| (2) The Authority may require an applicant to provide it with such information or documents as it considers necessary in relation to the application. |
| (3) An application under subsection (1) must be accompanied by a non‑refundable application fee of such amount as may be prescribed, which must be paid in the manner specified by the Authority. [1/2009] |
| (4) The Authority may approve an application under subsection (1) subject to such conditions or restrictions as the Authority thinks fit, or may refuse the application on any of the grounds set out in section 8(1). [1/2009] |
| (5) The Authority must not refuse an application under subsection (1) without giving the applicant an opportunity to be heard. [16 |
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| False statements in relation to application for grant or variation of financial adviser’s licence |
13. Any person who, in connection with an application for the grant or variation of a financial adviser’s licence —| (a) | without reasonable excuse, makes any statement which is false or misleading in a material particular; or | | (b) | without reasonable excuse, omits to state any matter or thing without which the application is misleading in a material respect, |
| shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000. |
[17 [1/2009] |
| Notification of change in particulars |
14.—(1) Where —| (a) | a licensed financial adviser ceases to act as a financial adviser; or | | (b) | a change occurs in any matter records of which are required by section 72 to be kept in relation to a licensed financial adviser, |
| the licensed financial adviser must, not later than 14 days after the occurrence of that event, provide particulars of the event to the Authority in the prescribed form. |
[1/2009] | (2) A person who ceases to act as a licensed financial adviser must return the licence to the Authority within 14 days of the date of the cessation. [1/2009] |
| (3) Any person who, without reasonable excuse, contravenes this section shall be guilty of an offence. [18 |
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| Lapsing, revocation and suspension of financial adviser’s licence |
15.—(1) A financial adviser’s licence lapses —| (a) | if the licensed financial adviser is wound up or otherwise dissolved, whether in Singapore or elsewhere; or | | (b) | in the event of such other occurrence or in such other circumstances as may be prescribed. [1/2009] |
(2) The Authority may revoke a financial adviser’s licence if —| (a) | there exists a ground on which the Authority may refuse an application under section 8(1); | | (b) | the licensed financial adviser has contravened any provision of this Act, or any condition or restriction imposed or any written direction issued by the Authority under this Act; | | (c) | it appears to the Authority that the licensed financial adviser has failed to satisfy any of its obligations under or arising from —| (i) | this Act; or | | (ii) | any written direction issued by the Authority under this Act; |
| | (d) | it appears to the Authority that the licensed financial adviser is carrying on its business in a manner that is —| (i) | likely to be detrimental to its clients; or | | (ii) | contrary to the interests of the public; |
| | (e) | the licensed financial adviser has provided any information or document to the Authority that is false or misleading; | | (f) | the Authority has reason to believe that the licensed financial adviser, or any of its officers or employees, has not performed its or his or her duties efficiently, honestly or fairly; | | (g) | a prohibition order under section 68 has been made by the Authority, and remains in force, against the licensed financial adviser; | | (h) | the Authority has reason to believe that the licensed financial adviser has not acted in the best interests of its clients; | | (i) | the licensed financial adviser fails to pay the licence fee mentioned in section 11; or | | (j) | the licensed financial adviser fails or ceases to carry on business in all types of financial advisory service for which it was licensed. [1/2009; 35/2012] |
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(3) The Authority may, if it considers it desirable to do so —| (a) | suspend a financial adviser’s licence for a specific period instead of revoking it under subsection (2); and | | (b) | at any time extend or revoke the suspension. [1/2009] |
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| (4) Subject to subsection (5), the Authority must not revoke or suspend a financial adviser’s licence under subsection (2) or (3) without giving the licensed financial adviser an opportunity to be heard. [1/2009] |
(5) The Authority may revoke or suspend a financial adviser’s licence without giving the licensed financial adviser an opportunity to be heard on any of the following grounds:| (a) | the licensed financial adviser is in the course of being wound up or otherwise dissolved, whether in Singapore or elsewhere; | | (b) | a receiver, a receiver and manager or an equivalent person has been appointed, whether in Singapore or elsewhere, for or in respect of any property of the licensed financial adviser; | | (c) | a prohibition order under section 68 has been made by the Authority, and remains in force, against the licensed financial adviser; | | (d) | the licensed financial adviser has been convicted, whether in Singapore or elsewhere, of an offence involving fraud or dishonesty or the conviction for which involved a finding that it had acted fraudulently or dishonestly. [1/2009] |
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| (6) A person whose financial adviser’s licence is revoked or suspended must cease to act as a financial adviser from the date on which the revocation or suspension takes effect. [1/2009] |
(7) Where the Authority has revoked or suspended a financial adviser’s licence, the licensed financial adviser must —| (a) | in the case of a revocation of its licence, immediately inform all its representatives by written notice of such revocation, and the representatives who are so informed must cease to act as representatives of that licensed financial adviser; or | | (b) | in the case of a suspension of its licence, immediately inform all its representatives by written notice of such suspension, and the representatives who are so informed must cease to act as representatives of that licensed financial adviser during the period of the suspension. [1/2009] |
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(8) A lapsing, revocation or suspension of a financial adviser’s licence must not operate so as to —| (a) | avoid or affect any agreement, transaction or arrangement relating to any investment product entered into by the licensed financial adviser, whether the agreement, transaction or arrangement was entered into before, on or after the lapsing, revocation or suspension of the licence; or | | (b) | affect any right, obligation or liability arising under any such agreement, transaction or arrangement. [1/2009] |
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| (9) Any person who continues to act as a financial adviser in contravention of subsection (6) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $150,000 and, in the case of a continuing offence, to a further fine not exceeding $15,000 for every day or part of a day during which the offence continues after conviction. [1/2009] |
| (10) Any financial adviser which contravenes subsection (7) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 and, in the case of a continuing offence, to a further fine not exceeding $5,000 for every day or part of a day during which the offence continues after conviction. [19 [1/2009] |
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16. Any person who is aggrieved —| (a) | by the refusal of the Authority to grant a financial adviser’s licence to it, or to vary its licence; or | | (b) | by the revocation or suspension of its licence by the Authority, |
| may, within 30 days of the refusal, revocation or suspension, appeal in writing to the Minister. |
[20 [1/2009] |
| Use of words “financial adviser” or “life insurance broker” |
17.—(1) A person, other than —| (a) | a licensed financial adviser; | | (b) | an exempt financial adviser; or | | (c) | a person, or a person belonging to a class of persons, approved by the Authority, |
| (d) | use the words “financial adviser” in any language, or any other word indicating that the person carries on business as a financial adviser, in the name, description or title under which the person carries on business in Singapore; or | | (e) | make any representation to such effect in any bill head, letter paper, notice, advertisement, publication or writing, whether in electronic, print or other form. |
(2) This section does not prohibit —| (a) | an appointed or provisional representative of a licensed financial adviser or exempt financial adviser; or | | (b) | a representative of an exempt financial adviser mentioned in section 20(1)(f) or (g), |
| from using the words “financial adviser” together with the word “representative” or any other word indicating that the person is a representative of a financial adviser. |
[1/2009] |
(3) A person, other than —| (a) | a licensed financial adviser which is authorised by its licence to provide any financial advisory service in respect of life policies; | | (b) | an exempt financial adviser which provides any financial advisory service in respect of life policies; or | | (c) | a person, or a person belonging to a class of persons, approved by the Authority, |
| (d) | use the words “life insurance broker” or any of its derivatives in any language, or any other word indicating that the person carries on business of providing any financial advisory service in respect of life policies, in the name, description or title under which the person carries on business in Singapore; or | | (e) | make any representation to such effect in any bill head, letter paper, notice, advertisement, publication or writing, whether in electronic, print or other form. |
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(4) This section does not prohibit —| (a) | an appointed or provisional representative of a licensed financial adviser or exempt financial adviser which provides any financial advisory service in respect of life policies; or | | (b) | a representative of an exempt financial adviser mentioned in section 20(1)(f) or (g) which provides any financial advisory service in respect of life policies, |
| from using the words “life insurance broker” together with the word “representative” or any other word indicating that the person is a representative of a financial adviser providing any financial advisory service in respect of life policies. |
[1/2009] |
| (5) Any person who contravenes subsection (1) or (3) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $12,500 and, in the case of a continuing offence, to a further fine not exceeding $1,250 for every day or part of a day during which the offence continues after conviction. [21 |
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| Holding out as financial adviser |
18.—(1) A person must not hold out to be a financial adviser unless the person is a licensed financial adviser, an exempt financial adviser or a person specified in the First Schedule.| (2) Any person who contravenes this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $75,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $7,500 for every day or part of a day during which the offence continues after conviction. [22 |
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| Regulation of payment, etc., of remuneration |
19.—(1) A licensed financial adviser or an exempt financial adviser, or a representative or supervisor of a licensed financial adviser or an exempt financial adviser must not request or demand payment of, or accept any remuneration, in relation to —| (a) | the provision of any financial advisory service in connection with any type of investment product; or | | (b) | the sale of any type of investment product following the provision of any financial advisory service, |
| except in accordance with regulations made under section 135 or a written notice issued by the Authority. |
[18/2015] (2) A licensed financial adviser or an exempt financial adviser must not pay another licensed financial adviser or exempt financial adviser, or a representative or supervisor of the firstmentioned licensed financial adviser or exempt financial adviser, or of another licensed financial adviser or exempt financial adviser, any remuneration in relation to —| (a) | the provision of any financial advisory service in connection with any type of investment product; or | | (b) | the sale of any type of investment product following the provision of any financial advisory service, |
| except in accordance with regulations made under section 135 or a written notice issued by the Authority. |
[18/2015] |
(3) The regulations or written notice mentioned in subsection (1) or (2) may prescribe or specify the following:| (a) | the type and amount of the remuneration which may be payable in any particular period; | | (b) | how the payment is to be made. [18/2015] |
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(4) Subsections (1) and (2) apply only to payment of remuneration which accrues —| (a) | on or after 1 January 2016; and | | (b) | under any agreement or arrangement whether made before, on or after 1 January 2016. [18/2015] |
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(5) Any person required to comply with subsection (1) or (2) must do so despite —| (a) | any written law in force on 1 January 2016 or rule of law to the contrary; or | | (b) | any agreement or arrangement entered into before, on or after 1 January 2016. [18/2015] |
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(6) Any person who complies with subsection (1) or (2) is not to be treated as having breached —| (a) | any rule of law or written law mentioned in subsection (5)(a); or | | (b) | any agreement or arrangement mentioned in subsection (5)(b) which was entered into before 1 January 2016, |
| and no such agreement or arrangement is taken to be brought to an end by frustration solely by reason of any act done in compliance with subsection (1) or (2), or any regulation or written notice mentioned in subsection (1) or (2). |
[18/2015] |
| (7) Any person who contravenes subsection (1) or (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 and, in the case of a continuing offence, to a further fine not exceeding $2,500 for every day or part of a day during which the offence continues after conviction. [18/2015] |
| (8) A written notice issued under this section need not be published in the Gazette. [18/2015] |
(9) In this section, “remuneration” includes —| (a) | any monetary commission, incentive, benefit or reward; | | (b) | any non-monetary incentive, benefit or reward; and | | (c) | such other consideration as may be prescribed under section 135 or specified by the Authority by written notice. [22A [18/2015] |
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| Exempt financial advisers and their representatives |
20.—(1) Subject to subsection (10), the following persons are exempt from holding a financial adviser’s licence to act as a financial adviser in Singapore in respect of any financial advisory service:| (a) | a bank licensed under the Banking Act 1970; | | (b) | a merchant bank licenced under the Banking Act 1970; | | (c) | a company or co-operative society licensed under the Insurance Act (Cap. 142) or a company registered as an insurance broker under that Act; [Act 18 of 2015 wef 10/05/2024] | | (d) | a holder of a capital markets services licence under the Securities and Futures Act 2001; | | (e) | a finance company which has been granted an exemption from section 25(2) of the Finance Companies Act 1967 to carry on a business of providing any financial advisory service; | | (f) | an approved exchange, a recognised market operator, or an approved holding company, in respect of the provision of any financial advisory service that is solely incidental to its operation of an organised market, or to its performance as an approved holding company, as the case may be; and | | (g) | such other persons or classes of persons as may be prescribed. [11/2013; 4/2017; 1/2020] |
| (2) Subject to the provisions of this Act, sections 34 to 38, 41, 42, 43, 45, 47 and 48 apply, with the necessary modifications, to an exempt financial adviser (other than a person mentioned in subsection (1)(f) or (g)) in respect of its business of providing any financial advisory service as if it is a licensed financial adviser. [18/2015] |
(3) Subject to the provisions of this Act, sections 34, 35 and 45 apply, with the necessary modifications, to —| (a) | a person mentioned in subsection (1)(f) in respect of its business of providing any financial advisory service as if it is a licensed financial adviser; and | | (b) | any of its representatives in respect of the person acting as such as if the person is a licensed financial adviser. [1/2009] |
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| (4) The reference in subsections (2) and (3) to specific sections of this Act do not include references to any regulations made under those sections unless the Authority prescribes that such regulations so apply. [1/2009] |
| (5) The Authority may, on the application of an exempt financial adviser (other than a person mentioned in subsection (1)(g)), exempt the exempt financial adviser from complying with any of the provisions mentioned in subsection (2) or (3), as the case may be. [1/2009] |
| (6) The Authority may, on the application of a person mentioned in subsection (1)(f), exempt any of its representatives from complying with any of the provisions mentioned in subsection (3). [1/2009] |
| (7) The Authority may prescribe or specify in written directions the provisions of this Act that apply to the persons mentioned in subsection (1)(g) or their representatives. |
| (8) An exemption granted under subsection (5) need not be published in the Gazette. |
| (9) The Authority may prescribe or specify in written directions such conditions or restrictions as may be imposed on an exempt financial adviser or a representative of a person mentioned in subsection (1)(f) or (g) in relation to the provision of any financial advisory service as the Authority thinks fit. [1/2009] |
(10) The Authority may withdraw an exemption granted to any person under this section if —| (a) | the person fails to pay the annual fee under section 21; | | (b) | the person contravenes any other provision of this Act; or | | (c) | the Authority considers it necessary in the public interest. [1/2009] |
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| (11) Where the Authority withdraws an exemption granted to any person under this section, the Authority need not give the person an opportunity to be heard. |
| (12) An exempt financial adviser which is aggrieved by the decision of the Authority to withdraw an exemption granted to it under this section may, within 30 days of the decision, appeal in writing to the Minister. |
(13) A withdrawal under subsection (10) of an exemption granted to any person does not operate so as to —| (a) | avoid or affect any agreement, transaction or arrangement, relating to any investment product entered into by the person, whether the agreement, transaction or arrangement was entered into before or after the withdrawal of the exemption; or | | (b) | affect any right, obligation or liability arising under any agreement, transaction or arrangement mentioned in paragraph (a). |
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| (14) Any exempt financial adviser which contravenes any condition or restriction imposed under subsection (9) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part of a day during which the offence continues after conviction. [1/2009] |
| (15) Any representative who contravenes any condition or restriction imposed under subsection (9) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 and, in the case of a continuing offence, to a further fine not exceeding $2,500 for every day or part of a day during which the offence continues after conviction. [23 [1/2009] |
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| Annual fees payable by exempt financial advisers and certain representatives |
| 21.—(1) Every exempt financial adviser and representative of a person exempted under section 20(1)(f) or (g) must, on a yearly basis on such date as the Authority may specify, pay such fee as the Authority may prescribe and in such manner and on such date as the Authority may specify. [1/2009] (2) Any fee paid under subsection (1) must not be refunded or remitted if —| (a) | in the case of an exempt financial adviser —| (i) | its exemption is withdrawn; | | (ii) | it fails or ceases to provide any financial advisory service; or | | (iii) | a prohibition order has been made against it under section 68, |
| during the period to which the fee relates; and |
| | (b) | in the case of a representative of a person exempted under section 20(1)(f) or (g) —| (i) | the exemption of the person who is so exempted is withdrawn; | | (ii) | the person fails or ceases to act as a representative; or | | (iii) | a prohibition order has been made against the person under section 68, |
| during the period to which the fee relates. |
[1/2009] |
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| (3) Subject to subsection (2), the Authority may, where it considers appropriate, refund or remit the whole or part of any fee paid or payable to the Authority. [1/2009] |
| (4) Where an exempt financial adviser or representative of a person exempted under section 20(1)(f) or (g) fails to pay the fee by the date on which such fee is due, the Authority may impose a late payment fee of a prescribed amount for every day or part of a day that the payment is late and both fees are recoverable by the Authority as a judgment debt. [23A [1/2009] |
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| Division 2 — Representatives |
22.—(1) A person must not act as a representative in respect of any type of financial advisory service or hold himself or herself out as doing so, unless the person is —| (a) | an appointed or provisional representative in respect of that type of financial advisory service; or | | (b) | a representative of an exempt financial adviser mentioned in section 20(1)(f) or (g), insofar as —| (i) | the type and scope of the financial advisory service provided by the firstmentioned person are within the type and scope of, or are the same as, that provided by the exempt financial adviser (in the exempt financial adviser’s capacity as such exempt financial adviser); and | | (ii) | the manner in which the firstmentioned person provides that type of financial advisory service is the same as the manner in which the exempt financial adviser (in the exempt financial adviser’s capacity as such exempt financial adviser) provides that type of financial advisory service. [1/2009] |
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(2) Without affecting subsection (1), a person must not act as a representative or hold himself or herself out as doing so, if the person is concurrently engaged in, whether or not for remuneration —| (a) | any employment with another person; or | | (b) | any business, trade, profession or vocation, whether for himself or herself or another person, |
| which does not involve the person performing any financial advisory service. |
[18/2015] |
| (3) Subsection (2) does not apply if the person complies with the conditions and requirements prescribed under section 135 or specified by the Authority by written notice, when engaging in such employment, business, trade, profession or vocation. [18/2015] |
| (4) The Authority may exempt any person or class of persons from subsection (1), subject to such conditions or restrictions as may be imposed by the Authority. [1/2009] |
(5) A principal must not permit any individual to provide any type of financial advisory service on its behalf unless —| (a) | the individual is an appointed or provisional representative in respect of that type of financial advisory service; or | | (b) | the principal is an exempt financial adviser under section 20(1)(f) or (g) and —| (i) | the type and scope of the financial advisory service provided by the individual are within the type and scope of, or are the same as, that provided by the exempt financial adviser (in the exempt financial adviser’s capacity as an exempt financial adviser); and | | (ii) | the manner in which the individual provides that type of financial advisory service is the same as the manner in which the exempt financial adviser (in the exempt financial adviser’s capacity as an exempt financial adviser) provides that type of financial advisory service. [1/2009] |
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(6) Without affecting subsection (5), a licensed financial adviser in Singapore or an exempt financial adviser in Singapore must not appoint as its appointed representative or provisional representative an individual whom the financial adviser knows or has reasonable grounds to believe, is concurrently engaged in, whether or not for any remuneration —| (a) | any employment with any person; or | | (b) | any business, trade, profession or vocation, whether for himself or herself or another person, |
| which does not involve the individual performing any financial advisory service. |
[18/2015] |
| (7) Subsection (6) does not apply if the licensed financial adviser or exempt financial adviser is satisfied that the criteria prescribed under section 135 or specified by the Authority by written notice for the purposes of this subsection have been satisfied. [18/2015] |
| (8) Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 or to imprisonment for a term not exceeding 12 months or to both and, in the case of a continuing offence, to a further fine not exceeding $2,500 for every day or part of a day during which the offence continues after conviction. [1/2009] |
| (9) Any person who contravenes subsection (5) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 and, in the case of a continuing offence, to a further fine not exceeding $5,000 for every day or part of a day during which the offence continues after conviction. [1/2009] |
| (10) A person who contravenes subsection (2) or (6) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $12,500. [18/2015] |
| (11) A written notice issued under this section need not be published in the Gazette. [18/2015] |
(12) In this section, “financial adviser in Singapore” means —| (a) | a financial adviser which is incorporated in Singapore; or | | (b) | in the case of a financial adviser incorporated outside Singapore, the branches or offices of the financial adviser located within Singapore. [23B [18/2015] |
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23.—(1) For the purposes of this Act, an appointed representative in respect of a type of financial advisory service is an individual —| (a) | who satisfies such entry and examination requirements as may be specified by the Authority for that type of financial advisory service, the fact of which has been notified to the Authority either in the document lodged under section 26(1), or (if applicable) under section 24(5) within the time prescribed under that provision; | | (b) | whose name is entered in the public register of representatives as an appointed representative; | | (c) | whose status as an appointed representative has not currently been revoked or suspended and who has not currently been prohibited by the Authority from providing that type of financial advisory service; | | (d) | whose entry in the public register of representatives indicates that the individual is appointed to provide that type of financial advisory service and does not indicate that the individual has ceased to be so; and | | (e) | whose principal —| (i) | is licensed to provide that type of financial advisory service; or | | (ii) | provides that type of financial advisory service in its capacity as a person exempted from the requirement to hold a financial adviser’s licence under section 20(1)(a), (b), (c), (d) or (e). [1/2009] |
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| (2) For the purpose of subsection (1)(a), the Authority may, by direction published in such manner as may be prescribed, specify the examination requirements for each type of financial advisory service. [1/2009] |
| (3) The Authority may require the principal or individual to provide it with such information or documents as the Authority considers necessary in relation to the proposed appointment of the individual as an appointed representative, and the principal or individual (as the case may be) must comply with such a request. [1/2009] |
(4) An individual ceases to be an appointed representative in respect of any type of financial advisory service on the date —| (a) | the individual ceases to be the principal’s representative or to provide that type of financial advisory service on behalf of the principal, the fact of which has been notified to the Authority under subsection (8); | | (b) | the individual’s principal ceases to provide that type of financial advisory service; | | (c) | the licence of the individual’s principal is revoked or lapses or a prohibition order under section 68 is made against the individual’s principal prohibiting it from providing that type of financial advisory service; | | (d) | the individual dies; or | | (e) | of the occurrence of such other circumstances as the Authority may prescribe. [1/2009] |
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| (5) An individual is not to be treated as an appointed representative during the period in which the licence of the individual’s principal is suspended. [1/2009] |
| (6) Subsection (4) or (5) does not prevent the individual from being treated as an appointed representative in respect of that type of financial advisory service if the individual becomes a representative of a new principal in respect of that type of financial advisory service and subsection (1) is complied with. [1/2009] |
(7) Subsections (4) and (5) do not operate so as to —| (a) | avoid or affect any agreement, transaction or arrangement relating to any investment product entered into by that individual, whether the agreement, transaction or arrangement was entered into before, on or after the cessation or date of suspension; or | | (b) | affect any right, obligation or liability arising under any such agreement, transaction or arrangement. [1/2009] |
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(8) A principal must, no later than the next business day after the day —| (a) | an individual ceases to be his or her representative; or | | (b) | an individual who is his or her representative ceases to provide any type of financial advisory service, which he or she is appointed to provide, |
| provide particulars of such cessation to the Authority, in the prescribed form and manner. |
[23C [1/2009] |
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| Provisional representative |
24.—(1) For the purposes of this Act, a provisional representative in respect of a type of financial advisory service is an individual —| (a) | who satisfies such entry requirements as may be specified by the Authority for that type of financial advisory service; | | (b) | who intends to undergo an examination in order to satisfy the examination requirements specified by the Authority under section 23(2) for that type of financial advisory service, the fact of which has been notified to the Authority in the document lodged under section 26(1); | | (c) | whose name is entered in the public register of representatives as a provisional representative; | | (d) | whose status as a provisional representative has not currently been revoked or suspended and who has not currently been prohibited by the Authority from providing that type of financial advisory service; | | (e) | whose entry in the public register of representatives indicates that the individual is appointed to provide that type of financial advisory service and does not indicate that the individual has ceased to be so; | | (f) | whose principal —| (i) | is licensed to provide that type of financial advisory service; or | | (ii) | provides that type of financial advisory service in its capacity as a person exempted from the requirement to hold a financial adviser’s licence under section 20(1)(a), (b), (c), (d) or (e); |
| | (g) | who has not previously been appointed as a provisional representative by the Authority; and | | (h) | who is not, by virtue of any circumstances prescribed by the Authority, disqualified from acting as a provisional representative. [1/2009] |
| (2) An individual is a provisional representative only in respect of any type of financial advisory service for such period of time as the Authority may specify against the individual’s name in the public register of representatives. [1/2009] |
(3) A provisional representative in respect of any type of financial advisory service immediately ceases to be one —| (a) | upon the expiry of the period of time specified by the Authority under subsection (2); | | (b) | if the provisional representative fails to comply with any condition or restriction imposed on the provisional representative under section 31; | | (c) | upon the provisional representative’s principal informing the Authority of the satisfaction of the examination requirements specified for that or any other type of financial advisory service under subsection (5); or | | (d) | on the occurrence of such other circumstances as the Authority may prescribe. [1/2009] |
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(4) Section 23(3) to (8) (other than subsection (4)(e) thereof) applies to a provisional representative —| (a) | as if the reference in section 23(6) to section 23(1) were a reference to subsection (1); and | | (b) | with such other modifications and adaptations as the differences between provisional representatives and appointed representatives require. [1/2009] |
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| (5) Where a provisional representative in respect of a type of financial advisory service has satisfied the examination requirements specified for that type of financial advisory service, the provisional representative’s principal must inform the Authority of that fact in the prescribed form and manner and within the prescribed time. [23D [1/2009] |
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| 25.—(1) Any person who contravenes section 23(3) or 24(4) (in relation to the application of section 23(3) to a provisional representative) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000. [1/2009] | (2) Any person who contravenes section 23(8), 24(4) (in relation to the application of section 23(8) to a provisional representative) or 26(5) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 and, in the case of a continuing offence, to a further fine not exceeding $5,000 for every day or part of a day during which the offence continues after conviction. [23E [1/2009] |
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26.—(1) A principal who desires to appoint an individual as an appointed or provisional representative in respect of any type of financial advisory service must lodge the following documents with the Authority in such form and manner as the Authority may prescribe:| (a) | a notice of intent by the principal to appoint the individual as an appointed or provisional representative in respect of that type of financial advisory service; | | (b) | a certificate by the principal that the individual is a fit and proper person to be an appointed or provisional representative in respect of that type of financial advisory service; and | | (c) | in the case of a provisional representative, an undertaking by the principal to undertake such responsibilities in relation to the representative as may be prescribed. [1/2009] |
(2) Subsection (1) does not apply to a principal who desires to appoint, as an appointed representative in respect of any type of financial advisory service, an individual who is a provisional representative in respect of that type of financial advisory service, if —| (a) | that individual has satisfied the examination requirements specified for that type of financial advisory service; and | | (b) | the principal has informed the Authority of that fact in the prescribed form and manner under section 24(5). [35/2012] |
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| (3) Subject to section 30, the Authority must, upon receipt of the documents lodged in accordance with subsection (1), enter in the public register of representatives the name of the representative, whether the representative is an appointed or provisional representative, the type of financial advisory service which the representative may provide, and such other particulars as the Authority considers appropriate. [1/2009] |
| (4) The Authority may refuse to enter in the public register of representatives the particulars mentioned in subsection (3) of the representative if the fee mentioned in section 28(1) or (3) (if applicable) is not paid. [1/2009] |
| (5) A principal who submits a certificate under subsection (1)(b) must keep, in such form and manner and for such period as the Authority may prescribe, copies of all information and documents which the principal relied on in giving the certificate. [1/2009] |
| (6) Where a change occurs in any particulars of the appointed or provisional representative in any document required to be provided to the Authority under subsection (1), the principal must, no later than 14 days after the occurrence of such change, provide particulars of such change to the Authority, in the prescribed form and manner. [1/2009] |
| (7) A principal who contravenes subsection (5) shall be guilty of an offence. [23F [1/2009; 35/2012] |
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| Representative to act for only one principal |
| 27.—(1) Unless otherwise approved by the Authority in writing, an appointed representative or provisional representative must not at any one time be a representative of more than one principal. [1/2009] | (2) Despite subsection (1), an appointed representative may be a representative of more than one principal if the principals are related corporations. [1/2009] |
| (3) The Authority may require an applicant for approval under subsection (1) to provide it with such information or documents as the Authority considers necessary in relation to the application. [1/2009] |
| (4) Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 or to imprisonment for a term not exceeding 12 months or to both and, in the case of a continuing offence, to a further fine not exceeding $2,500 for every day or part of a day during which the offence continues after conviction. [23G [1/2009] |
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| 28.—(1) An individual must, by the prescribed time, pay to the Authority such fee as may be prescribed by the Authority for the lodgment of documents under section 26 by the individual’s principal in relation to the individual’s appointment as an appointed or provisional representative. [1/2009] | (2) An individual who is an appointed or provisional representative must, by the prescribed time each year, pay such annual fee as may be prescribed by the Authority in relation to the retention of the individual’s name in the public register of representatives as an appointed or provisional representative. [1/2009] |
| (3) A representative must pay such fee as may be prescribed by the Authority for any resubmission of a form or change in the particulars of a form lodged with the Authority in relation to his or her appointment as an appointed or provisional representative. [1/2009] |
| (4) Unless otherwise prescribed by the Authority, any fee paid to the Authority under this section must not be refunded. [1/2009] |
| (5) Where the representative fails to pay the fee mentioned in subsection (1) or (2) by the date on which such fee is due, the Authority may impose a late payment fee of a prescribed amount for every day or part of a day that the payment is late and both fees are recoverable by the Authority as a judgment debt. [1/2009] |
| (6) The fees mentioned in this section must be paid in the manner specified by the Authority. [23H [1/2009] |
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| Additional financial advisory service |
| 29.—(1) The principal of an appointed representative may at any time lodge a notice with the Authority of its intention to appoint the representative as an appointed representative in respect of a type of financial advisory service in addition to that indicated against the representative’s name in the public register of representatives. [1/2009] | (2) The notification must be lodged in such form and manner as may be prescribed and must be accompanied by a certificate by the principal that the representative is a fit and proper person to be a representative in respect of the additional type of financial advisory service. [1/2009] |
| (3) Subject to section 30, the Authority must, upon receipt of the notification, enter in the public register of representatives the additional type of financial advisory service as one which the representative may provide as a representative. [1/2009] |
| (4) The Authority may, before entering in the public register of representatives the matter set out in subsection (3), require the principal or representative to provide it with such information or documents as the Authority considers necessary. [1/2009] |
| (5) A notification under subsection (1) must be accompanied by a non‑refundable prescribed fee which must be paid in the manner specified by the Authority. [23I [1/2009] |
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| Power of Authority to refuse entry or revoke or suspend status of appointed or provisional representative |
30.—(1) Subject to regulations made under this Act, the Authority may refuse to enter the name and other particulars of an individual in the public register of representatives, refuse to enter an additional type of financial advisory service for an appointed representative in that register, or revoke the status of an individual as an appointed or provisional representative if —| (a) | being an appointed or provisional representative, the individual fails or ceases to act as a representative in respect of all of the types of financial advisory services that were notified to the Authority as services which the individual is appointed to provide as a representative; | | (b) | the individual or the individual’s principal has not provided the Authority with such information or documents as the Authority may require; | | (c) | the individual is an undischarged bankrupt, whether in Singapore or elsewhere; | | (d) | an enforcement order against the individual in respect of a judgment debt has been returned unsatisfied in whole or in part; [Act 25 of 2021 wef 01/04/2022] | | (e) | the individual has, whether in Singapore or elsewhere, entered into a compromise or scheme of arrangement with the individual’s creditors, being a compromise or scheme of arrangement that is still in operation; | | (f) | the individual —| (i) | has been convicted, whether in Singapore or elsewhere, of an offence involving fraud or dishonesty or the conviction for which involved a finding that the individual had acted fraudulently or dishonestly; or | | (ii) | has been convicted of an offence under this Act; |
| | (g) | in the case of the proposed appointment of an appointed or provisional representative in respect of a type of financial advisory service, or of an application to enter an additional type of financial advisory service for an appointed representative in the register —| (i) | the Authority is not satisfied as to the individual’s educational or other qualification or experience having regard to the nature of the duties the individual is to perform in relation to that type of financial advisory service; | | (ii) | the individual or the individual’s principal fails to satisfy the Authority that the individual is a fit and proper person to be an appointed or provisional representative or to perform that type of financial advisory service; | | (iii) | the Authority is not satisfied as to the individual’s record of past performance or expertise having regard to the nature of the duties which the individual is to perform in relation to that type of financial advisory service; | | (iv) | the Authority has reason to believe that the individual will not perform that type of financial advisory service efficiently, honestly or fairly; |
| | (h) | in the case of the revocation of the status of an individual as an appointed or provisional representative —| (i) | the individual or the individual’s principal fails to satisfy the Authority, pursuant to a requirement imposed by the Authority as a condition for the individual to be an appointed or provisional representative under section 31 or by regulations (as the case may be), that the individual remains a fit and proper person to be an appointed or provisional representative or to perform the type of financial advisory service for which the individual is appointed; | | (ii) | the Authority is not satisfied with —| (A) | the individual’s educational or other qualification or experience (being qualification or experience not known to the Authority at the time the individual’s name and particulars are entered in the public register of representatives); or | | (B) | the individual’s record of past performance or expertise, |
| having regard to the nature of the individual’s duties as an appointed or provisional representative; |
| | (iii) | the Authority has reason to believe that the individual has not performed, or will not perform, the type of financial advisory service for which the individual is appointed efficiently, honestly or fairly; or | | (iv) | the Authority has reason to believe that the individual has not acted in the best interests of the clients of the individual’s principal; |
| | (i) | the Authority has reason to believe that the individual may not be able to act in the best interests of the clients of the individual’s principal, having regard to the individual’s reputation, character, financial integrity and reliability; | | (j) | the Authority is not satisfied as to the individual’s financial standing; | | (k) | there are other circumstances which are likely to lead to the improper conduct of business by, or reflect discredit on the manner of conducting the business of, the individual or any person employed by or associated with the individual for the purpose of the individual’s business; | | (l) | the individual is in arrears of the payment of such contributions on the individual’s own behalf to the Central Provident Fund as are required under the Central Provident Fund Act 1953; | | (m) | the Authority is of the opinion that it would be contrary to the interests of the public to enter the individual’s name in the public register of representatives or allow the individual to continue as an appointed or provisional representative or to provide that additional type of financial advisory service, as the case may be; | | (n) | the Authority has reason to believe that any information or document that is provided by the individual or the individual’s principal to the Authority is false or misleading; | | (o) | the individual has contravened any provision of this Act applicable to the individual, any condition or restriction imposed on the individual under this Act or any direction issued to the individual by the Authority under this Act; | | (p) | it appears to the Authority that the individual has failed to satisfy any of the individual’s obligations under or arising from —| (i) | this Act; or | | (ii) | any written direction issued by the Authority under this Act; |
| | (q) | a prohibition order under section 68 has been made by the Authority, and remains in force, against the individual; | | (r) | the licence of the individual’s principal is revoked; | | (s) | the individual fails to pay any fee mentioned in section 28; or | | (t) | in the case of the proposed appointment of a provisional representative in respect of a type of financial advisory service —| (i) | the individual is not or was not previously licensed, authorised or otherwise regulated as a representative in relation to a comparable type of financial advisory service in a foreign jurisdiction for such minimum period as may be prescribed for this sub‑paragraph; | | (ii) | the individual was previously so licensed, authorised or regulated in a foreign jurisdiction but the period between the date of the individual ceasing to be so licensed, authorised or regulated and the date of the individual’s proposed appointment as a provisional representative exceeds such period as may be prescribed for this sub‑paragraph; or | | (iii) | the Authority is not satisfied that the laws and practices of the jurisdiction under which the individual is or was so licensed, authorised or regulated provide protection to investors comparable to that applicable to an appointed representative under this Act. [1/2009; 35/2012] |
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(2) The Authority may, if it considers it desirable to do so —| (a) | instead of revoking the status of an individual as an appointed or provisional representative, suspend that status for such period as the Authority may determine; and | | (b) | at any time —| (i) | extend the period of suspension; or | | (ii) | revoke the suspension. [1/2009] |
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| (3) An individual whose status as an appointed or provisional representative has been revoked is deemed not to be an appointed or provisional representative, as the case may be. [1/2009] |
| (4) Where the status of an individual as an appointed or provisional representative has been suspended, the individual is deemed not to be an appointed or provisional representative (as the case may be) during the period of suspension. [1/2009] |
(5) Where the Authority has revoked the status of an individual as an appointed or provisional representative, the Authority must —| (a) | indicate against the individual’s name in the public register of representatives that fact, which indication must remain in the register for such period as the Authority considers appropriate; or | | (b) | remove the individual’s name from the register. [1/2009] |
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| (6) Where the Authority has suspended the status of an individual as an appointed or provisional representative, the Authority must indicate against the individual’s name in the public register of representatives that fact and the period of the suspension. [1/2009] |
| (7) Where the Authority has extended or revoked a suspension of the status of an individual as an appointed or provisional representative, the Authority must indicate against the individual’s name in the public register of representatives the new expiry date of the suspension, or indicate that the individual is no longer suspended, as the case may be. [1/2009] |
(8) The Authority must not take any action under subsection (1) or (2)(a) on the ground mentioned in subsection (1)(n), if —| (a) | in a case where the information or document was provided by the individual to the Authority, the individual proves that he or she had —| (i) | made all inquiries (if any) that were reasonable in the circumstances; and | | (ii) | after doing so, believed on reasonable grounds that the information or document was not false or misleading; or |
| | (b) | in a case where the information or document was provided by the principal to the Authority and —| (i) | such information or document was provided to the principal by the individual, the individual proves that he or she had —| (A) | made all inquiries (if any) that were reasonable in the circumstances; and | | (B) | after doing so, believed on reasonable grounds that the information or document was not false or misleading; or |
| | (ii) | such information or document was not provided to the principal by the individual, the principal proves that he or she had —| (A) | made all inquiries (if any) that were reasonable in the circumstances; and | | (B) | after doing so, believed on reasonable grounds that the information or document was not false or misleading. [1/2009] |
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| (9) Subject to subsection (10), the Authority must not take any action under subsection (1) or (2)(a) or (b)(i) without giving the individual an opportunity to be heard. [1/2009] |
(10) The Authority may take action under subsection (1) or (2)(a) or (b)(i) on any of the following grounds without giving the individual an opportunity to be heard:| (a) | the individual is an undischarged bankrupt, whether in Singapore or elsewhere; | | (b) | a prohibition order under section 68 has been made by the Authority, and remains in force, against the individual; | | (c) | the individual has been convicted, whether in Singapore or elsewhere, of an offence —| (i) | involving fraud or dishonesty or the conviction for which involved a finding that the individual had acted fraudulently or dishonestly; and | | (ii) | punishable with imprisonment for a term of 3 months or more; |
| | (d) | the ground mentioned in subsection (1)(t)(i) or (ii). [1/2009] |
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(11) Any revocation or suspension by the Authority shall not operate so as to —| (a) | avoid or affect any agreement, transaction or arrangement relating to any investment product entered into by such individual, whether the agreement, transaction or arrangement was entered into before, on or after the revocation or suspension, as the case may be; or | | (b) | affect any right, obligation or liability arising under any such agreement, transaction or arrangement. [23J [1/2009] |
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| Power of Authority to impose conditions or restrictions |
| 31.—(1) The Authority may, by written notice to an appointed or provisional representative, impose such conditions or restrictions as it thinks fit on the appointed or provisional representative. [1/2009] | (2) Without limiting subsection (1), the Authority may, in entering the appointed or provisional representative’s name in the public register of representatives, impose conditions or restrictions with respect to the type of financial advisory service which the appointed or provisional representative may or may not provide. [1/2009] |
| (3) The Authority may, at any time by written notice to the appointed or provisional representative, vary any condition or restriction or impose such further condition or restriction as it may think fit. [1/2009] |
| (4) Any person who contravenes any condition or restriction imposed by the Authority under this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 and, in the case of a continuing offence, to a further fine not exceeding $2,500 for every day or part of a day during which the offence continues after conviction. [23K [1/2009] |
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| False statements in relation to notification of appointed or provisional representative |
32.—(1) Any principal who, in connection with the lodgment of any document under section 26 —| (a) | makes a statement which is false or misleading in a material particular; or | | (b) | omits to state any matter or thing without which the document is misleading in a material respect, |
| shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000. |
[1/2009] (2) Any individual who, in connection with the lodgment by the individual’s principal of any document under section 26 —| (a) | makes a statement to the individual’s principal which is false or misleading in a material particular, being a statement subsequently lodged with the Authority; or | | (b) | omits to state any matter or thing to the individual’s principal as a result of which the document is misleading in a material respect, |
| shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000. |
[1/2009] |
(3) Any person who, when required to provide any document or information to the Authority under section 23(3) or 24(4) (in relation to the application of section 23(3) to a provisional representative) —| (a) | makes a statement to the Authority which is false or misleading in a material particular; or | | (b) | omits to state any matter or thing to the Authority without which the document or information is misleading in a material respect, |
| shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000. |
[1/2009] |
(4) A person mentioned in subsection (1), (2) or (3) shall not be guilty of an offence if the person proves that the person —| (a) | made all inquiries (if any) that were reasonable in the circumstances; and | | (b) | after doing so, believed on reasonable grounds that the statement made or the omission to state the matter or thing (as the case may be) was not false or misleading. [23L [1/2009] |
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33. Any person who is aggrieved by —| (a) | the refusal of the Authority under section 30(1) to enter the person’s name and other particulars in the public register of representatives, or to enter an additional type of financial advisory service for the person in that register; or | | (b) | the revocation or suspension of the person’s status as an appointed or provisional representative under section 30(1) or (2)(a), |
| may, within 30 days after the person is notified of the decision of the Authority, appeal to the Minister whose decision is final. |
[23M [1/2009] |
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